India on track to become top global steel producer as per BMI Report
India as a steel bright spot is highly encouraging and is on track to become a top global producer, says industries and macroeconomic research body BMI.
As per their latest report, demand from construction, automotive and infrastructure industries in the country continues to accelerate.
The report has accredited the steel sector's success to the government's push to raise capacity in order to meet demand from construction, automotive and infra sectors, said the Steel Users Federation of India (SUFI) in a statement today.
BMI Research has forecast India's steel output to clock an average annual growth of 8.9 per cent during 2017-21, higher than 2.9 per cent in 2012-16.
The report also stated India's steel output would grow to 128.6 mt by 2021 from 88.4 million tonnes (mt) in 2017 and the country's share of global steel production will accelerate to 7.7 per cent in 2021 from 5.4 per cent in 2017.
Commenting on the growth of the industry, SUFI President Nikunj Turakhia said, "In recent years, the Indian steel industry has showcased a progressive output trend y-o-y."
Being recognised as a "bright spot" is highly encouraging as well as a large responsibility at the same time, he said, adding that with the introduction of new steel and anti-dumping policies, India is on the path to become one of the top steel producers.
The report also highlighted that Indian steel giants such as Steel Authority of India Ltd (SAIL) and Tata Steel as the major drivers of such growth.
Ahead of the GST Council meeting tomorrow, Turakhia expressed concern over the headwinds faced by the sector. He has also urged the government to relax imposition of GST penalties and prosecution.SUFI was part of the delegation that recently presented its case on GST to Maharashtra Finance Minister Sudhir Mungantiwar in Mumbai.